Oasis Urges Nidec to Begin Preliminary Review of Privatization Options

*Oasis calls for outside directors to lead the solicitation of preliminary privatization proposals to prepare for an unintended delisting and develop options to maximize corporate value
(TOKYO: 6594)

HONG KONG--(BUSINESS WIRE)-- Oasis Management Company Ltd. (“Oasis”) is the manager of funds that own shares in Nidec Corporation (“Nidec” or the “Company”). As a long-term shareholder, Oasis has continued to engage with the Company on restoring corporate value and improving governance. Oasis is deeply disappointed by Nidec’s recent disclosures.

Oasis strongly urges Nidec’s Board of Directors to promptly begin a preliminary review of privatization options. Specifically, Oasis calls on the outside directors to independently engage financial advisers and solicit preliminary, non-binding proposals from strategic buyers and private equity firms in Japan and overseas based on publicly available information and other available materials. Oasis believes that the Company should develop concrete options to protect employees, customers and shareholders while minimizing additional demands on management and internal resources currently devoted to addressing audit-related issues.

The securities report filed by Nidec on September 30 included a disclaimer of opinion from the independent auditor. The reasons cited included the finding that “certain officers and employees who participated in, directed, or had knowledge of the improper accounting practices, or who provided false explanations to the independent auditor, continue to hold positions of responsibility within the financial reporting process of the Company and its group companies.” Oasis is shocked and deeply disappointed that such basic remedial actions remain incomplete. Nidec’s Board of Directors must confront the risk of an unintended delisting if the Company fails to obtain an unqualified audit opinion and the Tokyo Stock Exchange determines that its internal management system has not been adequately established.

Since December 2025, Oasis has urged the Company to consider privatization, warning that shareholders could suffer substantial losses if the Company were delisted before they had an opportunity to sell their shares at a fair price reflecting the Company’s intrinsic value. The Company cannot guarantee an unqualified audit opinion through its own efforts alone. Oasis believes that, alongside efforts to maintain the Company’s listing, management and the Board of Directors have a responsibility to consider multiple risk scenarios and develop options in advance to address each scenario.

Oasis is calling for a preliminary review to assess the feasibility and terms of a potential privatization, rather than a decision at this stage to proceed with a transaction. Oasis believes that the Board of Directors should begin by gauging potential acquirers’ interest and soliciting preliminary proposals based on publicly available information and other available materials. With the outside directors leading this process, the Company can develop concrete contingency plans to protect the common interests of all shareholders while minimizing disruption to efforts to obtain an unqualified audit opinion.

A preliminary review of privatization options would help Nidec prepare for an unintended delisting and support efforts to maximize corporate value even if the Company maintains its listing. As the Company develops its Medium-Term Management Plan, soliciting proposals from a broad range of potential acquirers would provide the Company with external assessments of its corporate value and growth potential and help identify practical measures to enhance that value. Oasis believes that comparing a standalone strategy with privatization proposals is also important in determining the strategic direction of the Company’s “second founding.”

Oasis recognizes that Nidec possesses technologies that are important to Japan. When reviewing privatization proposals, the Company should give full consideration to the importance of these technologies, while prioritizing the interests of all stakeholders, including employees and customers, and the realization of fair value for shareholders.

Oasis again strongly urges Nidec’s Board of Directors, particularly its outside directors, to promptly begin a preliminary review of privatization options and fulfill their responsibility to restore corporate value and protect stakeholders. As a long-term shareholder, Oasis will continue to engage in constructive dialogue and provide support as needed to help revitalize the Company and advance the interests of shareholders as a whole.

Oasis Management Company Ltd. manages private investment funds focused on opportunities in a wide array of asset classes across countries and sectors. Oasis was founded in 2002 by Seth H. Fischer, who leads the firm as its Chief Investment Officer. More information about Oasis is available at https://oasiscm.com. Oasis has adopted the Japan FSA’s “Principles for Responsible Institutional Investors” (a.k.a. the Japan Stewardship Code) and, in line with those principles, Oasis monitors and engages with our investee companies.

Oasis is not in any way soliciting or requesting shareholders to jointly exercise their voting rights together with Oasis. Shareholders that have an agreement to jointly exercise their voting rights are regarded as “Joint Holders” under the Japanese large shareholding disclosure rules, and they must file a notification of their aggregate share ownership with the relevant Japanese authority for public disclosure. Oasis disclaims any intention to be treated as a Joint Holder and/or a Specially Related Person with any other shareholder under the Japanese Financial Instruments and Exchange Act (“FIEA”) by virtue of the expression of views and opinions and/or any engagement with shareholders and other third parties in or through this document, any public statements or any other information or materials created and/or published by Oasis (whether written or oral, and regardless of medium). Oasis has no intention to receive any power to represent other shareholders in relation to the exercise of their voting rights. This document exclusively represents the opinions, interpretations, and estimates of Oasis. Oasis is expressing such opinions solely in its capacity as an investment advisor to the Oasis funds. Oasis and/or the investment funds it advises hold, and may in the future hold, investments in the company referenced in this document. Accordingly, the views and opinions expressed in this document should not be regarded as impartial. Nothing in this document should be taken as any indication of Oasis’ current or future trading, voting or other intentions which may change at any time. Nothing stated herein is intended to be or should be construed as a proposal for the purposes of paragraph 1 of Article 14-8-2 of the Order for Enforcement of the FIEA (Cabinet Order No 321 of 1965), as amended by Cabinet Order No 247 of July 4, 2025 or otherwise, unless otherwise expressly indicated.

View source version on businesswire.com: https://www.businesswire.com/news/home/20261007596702/en/

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Source: Oasis Management Company Ltd.

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